Kerrisdale announces short position in First Majestic Silver Corp

NEW YORK (Reuters) - Kerrisdale Capital Management now holds a short position in the stock and via options of First Majestic Silver Corp. (FR.TO), according to a report released Thursday by the hedge fund firm.

Kerrisdale, led by Sahm Adrangi, wrote in the report that the Canadian mining company is in a “speculative frenzy” and that its valuation is “now outrageously detached from reality.”

Kerrisdale, which manages approximately $350 million and has lost money this year through July, said First Majestic Silver could fall between 70 percent and 80 percent from its current levels near $12 a share. The stock has gained approximately 267 percent this year through Wednesday.

U.S. listed shared of First Majestic fell more than 5 percent in early trading Thursday following news of the report.

Adrangi declined to comment. First Majestic did not immediately respond to a request for comment.